- Ethereum price hits a 10-day high, testing the 50-day SMA for the first time since September 22.
- Momentum indicators also defend bullish bias as ETH crosses the middle Bollinger Band.
- Ethereum consolidates on the four-hour chart as the upper Bollinger Band challenges immediate upside.
- ETH regains upward momentum, targeting multi-week previous support as buyers clear key resistance levels.
Ethereum (ETH) rises over 1% intraday to $4,398 early Thursday, at the highest levels in 10 days as bulls poke the 50-day Simple Moving Average (SMA) for the first time since September 22.
The ETH’s successful breakout of the middle Bollinger Band (BB), backed by strengthening bullish bias of the Directional Movement Index (DMI) and Moving Average Convergence Divergence (MACD) momentum indicators, keeps buyers optimistic.
Additionally, strong trading volume and market capitalization (market cap) also reinforce the upside bias for the ETH coin. According to Santiment, Ethereum’s daily trading volume reached a one-week high of $47.05 billion, while the market cap rose to its highest level in 11 days, at $529.66 billion by press time.
Elsewhere, the U.S. government shutdown and the dovish Federal Reserve (Fed) bias weigh on the U.S. Dollar and add strength to the ETH’s upside momentum.
Also read: U.S. Government Shuts Down: Political Gridlock Halts Federal Operations
With this, Ethereum’s latest run-up looks poised to challenge the key upside hurdles, helping to reinforce the broader bullish trend.
Ethereum Price: Daily Chart Points To Growing Bullish Bias
Ethereum’s strong rebound from the lower Bollinger Band (BB), combined with the recent breakout of the middle BB, reinforces a growing bullish bias in the MACD and DMI, supporting a positive upside outlook.
That said, MACD’s histogram (green) posts the strongest bullish sign in over two weeks. On the same line, the DMI’s Downmove (D-, Orange) line eases from the highest level since April, marked last week, toward the 25.00 neutral level, suggesting the downside momentum is cooling off. Meanwhile, the D+ (Upmove, blue) is at the top, and the ADX (Average Directional Index, red) line is below the 25.00 neutral level, pointing to a gradually rising upside bias.
However, a daily closing beyond the 50-day SMA hurdle of $4,387 becomes necessary to facilitate the ETH buyers as they target the previous support line from mid-August, close to $4,515 as we write.
As Ethereum bulls push past $4,515, a key resistance zone between $4,765 and $4,830, formed on August 13, poses a major challenge for those targeting a new all-time high (ATH) near $5,000. The recent ATH of $4,955 may also serve as an intermediate resistance on the way up.
Alternatively, the ETH pullback may aim for the middle BB of $4,330 and the $4,000 threshold before approaching the key $3,885-$3,855 support confluence, comprising the 100-day SMA and the lower BB.
Below that, an ascending trend line from early April and the 200-day SMA, around $3,345 and $3,000 in that order, will be critical levels that could determine the fate of Ethereum’s bearish trend.
Ethereum Price: Four-Hour Chart Highlights $4,421
Ethereum’s four-hour chart becomes interesting as it retreats from the upper Bollinger Band despite keeping the 200-bar SMA breakout.
Given the bullish MACD signals and the strong ADX and Upmove lines from the DMI indicator, the ETH buyers are likely to overcome the immediate hurdle, namely the upper BB of $4,421.
This will allow the buyers to aim for the six-week horizontal resistance area surrounding $4,765-$4,830. Beyond that, the daily chart resistances could lure the buyers.
On the flip side, a downside break of the 200-bar SMA support of $4,342 won’t recall the ETH bears as the previous resistance line from September 13, close to $4,310, could challenge the downside moves.
After that, the middle BB of $4,225 and a week-long support line near $4,180 can restrict the ETH’s further fall before the $4,000 threshold and the deeper levels discussed on the daily chart.
Conclusion
Ethereum’s latest run-up justifies upbeat momentum indicators and key resistance breakouts, allowing buyers to keep the reins. However, for ETH’s upside bias to strengthen, a fundamental catalyst is needed to push bulls toward early-September peaks and set sights on a fresh all-time high (ATH).
Also read: Crypto Weekly Price Prediction: BTC, ETH & XRP all Tumble as U.S. Data Fuels Dollar, NFP Eyed
